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Jeremy McGee                            Ross Levanto or Jason Morris    David Thain
webMethods, Inc.                                Schwartz Communications, Inc.   Cable & Wireless
+44 (0) 118 963 7802                    (781) 684-0770                  +44 (0) 20 7674 5442
jeremy.mcgee@webMethods.com             webmethods@schwartz-pr.com      david.thain@cw.com      

Global Telco Adopts webMethods Enterprise to Deliver World-Wide Business Efficiencies

READING, UK, October 18, 2000  webMethods, Inc. (Nasdaq: WEBM), the leading provider of business-to-business integration (B2Bi) solutions, today announced that it has been selected by global telecommunications company, Cable & Wireless, to provide a world- wide integration solution. Using webMethods Enterprise, Cable & Wireless will integrate its internal strategic platforms to fully automate and e-enable its business, thereby enhancing its competitiveness and customer service.

To e-enable the company and its customers, Cable & Wireless recognizes the need to achieve total end-to-end integration of all its business processes. webMethods Enterprise will initially be used to integrate Cable & Wireless’ four global strategic systems: Architel Objectel/OMS, Clarify, Kenan Arbor BP and Siebel, which will maximize the benefits of each system across the organization.

Cable & Wireless is committed to ensuring that 100 percent of all processes for its strategic data and IP products are e-enabled by the end of 2002. The initial projected benefits of Cable & Wireless’ e-enablement project will be: revenue maximization, reduced cost of sales, increased customer satisfaction and increased operational efficiency.

“To fulfill the strategic needs of the organization and remain competitive we need to change the way we do business,” says Tom Christie, senior vice president of IT of Cable & Wireless. “webMethods Enterprise provides us with a strategic environment which will allow the rapid integration of internal systems and deliver streamlined business processes to enhance the responsiveness of our organization to the changing market.”

“Cable & Wireless has recognized the crucial part that business-to-business integration has to play in today’s organizational success,” says Roy Murphy, vice president EMEA at webMethods, Inc. “webMethods Enterprise can deliver immediate results, and will quickly provide Cable & Wireless with an end-to-end integration capability, bridging the gaps between back-office systems and the interface with the customer.”

About Cable & Wireless

Cable & Wireless is a major global telecommunications business with revenue of over £9 billion (US$14 billion) in the year ending March 31, 2000, and customers in 70 countries. Its operations around the world offer a full range of telecommunications services. Cable & Wireless’ focus for future growth is on IP (Internet Protocol) and data services and solutions for business customers. It is developing advanced IP networks and value-added services in the US, Europe and the Asia-Pacific region in support of this strategy. With the capability of its global IP infrastructure and its strength in key markets, Cable & Wireless holds a unique position in terms of global coverage and services to business customers.

About webMethods, Inc.

webMethods, Inc. (Nasdaq: WEBM) is the leading provider of software solutions for business-to-business integration (B2Bi). As the only company providing seamless B2Bi across the Internet and throughout the extended enterprise, webMethods provides Global 2000 companies and B2B marketplaces with a complete, end-to-end solution for integrating customers, suppliers and partners into real-time B2B trading networks, while also increasing internal operational efficiencies. The webMethods product family allows companies to create new revenue opportunities, strengthen relationships with customers, substantially reduce supply chain inefficiencies and streamline internal business processes.

Founded in 1996, webMethods is based in Fairfax, Va., with offices across the U.S., Europe and Asia. With an emphasis on key vertical markets such as chemicals, financial services, high-tech manufacturing and telecommunications, webMethods has more than 425 customers worldwidefrom Global 2000 leaders such as Citibank, Dell, Eastman Chemical Company, Fidelity Investments, Grainger, Motorola and Starbucks to major B2B marketplaces like ChemConnect, e-STEEL and Ventro. webMethods’ strategic partners include Ariba, Commerce One, Deloitte Consulting, EDS, i2 Technologies, J.D. Edwards, KPMG, Microsoft, Oracle Corp., SAP AG and Siebel. More information about the company can be found at www.webMethods.com.

webMethods and webMethods B2B are trademarks of webMethods, Inc. All other company and product names are property of their respective owners. This press release contains various remarks about the future expectations, plans and prospects of webMethods that constitute forward- looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. The actual results of webMethods may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of webMethods’ recent Registration Statement on Form S-4, the company’s Form 10- K for the year ended March 31, 2000 and Form 10-Q for the quarter ended June 30, 2000, which are on file with the Securities and Exchange Commission.

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